Rawhide prices fixed on lower levels

The maximum buying prices of per square foot rawhide of sacrificial animals have been fixed at Tk 70-75 in Dhaka and Tk 60-65 outside the capital during the Eid-ul-Azha.
Last year, the maximum procurement prices of rawhide were set at Tk 85-90 per sft for Dhaka, and Tk 75-80 for areas outside the capital.
The prices of goatskin will range between Tk 30 and Tk 35 per sft, while the prices of buffalo hide at Tk 40-45 per sft throughout the country.
Bangladesh Tanners Association (BTA), Bangladesh Hide and Skin Merchants Association (BHSMA) and Bangladesh Finished Leather, Leather-goods and Footwear Exporters' Association (BFLLFEA) jointly announced the prices at a press conference in the city.
 "The prices have been fixed on the lower side this Eid, as the prices of rawhide have fallen in the international market," said BFLLFEA president Md. Abu Taher.
He said they have fixed the prices in line with the situation in the international market and the domestic scenario.
But sources said the international market is witnessing a rising demand for hides.
Last year the tanners purchased rawhide and skin at higher prices than the announced ones.
They had to purchase rawhide at the highest price of Tk 125 per sft against its announced price of Tk 85-95 in Dhaka and Tk 75-80 elsewhere.
Md. Abu Taher said the leather industry is now passing through a critical time. "We are not getting any incentive from the government."
"Besides, many international buyers are refusing to buy our products, as according to them, the infrastructural setup of our leather processing factories is not environment-friendly."
Earlier on Wednesday, Commerce Minister Tofail Ahmed asked the traders to fix the prices of rawhide by Friday, considering the global market prices.
The traders were reluctant to set the prices, reasoning that the prices are falling in the international market.
Talking to The Financial Express, BHSMA president Ali Hussain said they were forced to announce the prices.
At the press conference, the tanners said the government is likely to inform people of the fixed prices of rawhide through cell-phone messages.
UNB adds, BTA chairman M Shaheen Ahmed said they request the seasonal rawhide collectors to follow the fixed prices, so that they can avert any risk of financial loss.
"Don't buy rawhides at excessive prices, it may bring financial loss for you," he conveyed to the seasonal buyers.
According to the Ministry of Commerce, about 7.0 million sft rawhides are collected during the Eid-ul-Azha. During the year 2013-14, Bangladesh earned $1295.74 million by exporting leather and leather goods.
Of the total earning, some $505.54 million came from leather export, $240.09 million from leather goods, and $550.11 million from leather shoe export.
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